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matrenka [14]
2 years ago
14

Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships

. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships’ employees. Dealerships need only pay for their employees’ time and travel to ADP headquarters, where they attend "Software U" at no additional charge. The time and travel expenses paid by a dealership to train workers is an example of what type of specialized investment?
a. Dedicated asset
b. Site specificity
c. Physical-asset specificity
d. Human capital
Business
1 answer:
koban [17]2 years ago
5 0

Answer:

The answer is c) Physical-asset specificity

Explanation:

The asset specificity is defined as the degree in the investments made to support a need to have a higher value than they would have if they are redistributed for any other purpose. They are non-redistributable physical and human investments that are specialized and exclusive for a task. In the example of the exercise, employee training is a specific investment of assets, since it is more likely that your investment will have the same profitability in the management of software and hardware provided by ADP.

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The first step in the decision-making process requires you to do what?
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Answer:

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1 year ago
QUESTION 2 of 10: Three smoothie shops exist in your town with annual sales of $300,000; $344,000; and $412,000. What is the ave
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Answer:

352,000

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6 0
1 year ago
Sometimes very high ________ costs are recognized before a project begins and reducing these costs through shorter project durat
Kruka [31]

Answer:

Overhead costs

Explanation:

When high overhead costs are recognised before project starts there will be a need to manage them. Since overhead cost increase as duration of project increases, reduction in project duration will go a long way in reducing cost incurred.

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8 0
1 year ago
Read 2 more answers
Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct material
Yakvenalex [24]

Answer:

It is cheaper to make the part in house.

Explanation:

Giving the following information:

Harrison Enterprises currently produces 8,000 units of part B13.

Current unit costs for part B13 are as follows:

Direct materials $12

Direct labor 9

Factory rent 7

Administrative costs 10

General factory overhead (allocated) 7

Total $45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.

To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.

Unavoidable costs:

Factory rent= 7

Administrative costs= 5

General factory overhead= 7

Total= 17

Now, we can calculate the unitary cost of making the product in-house:

Unitary cost= direct material + direct labor + avoidable administrative costs

Unitary cost= 7 + 5 + 5= $17

It is cheaper to make the part in house.

3 0
1 year ago
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